|APR - Annual Percentage Rate|
When you're shopping for a mortgage, you need to know what closing costs are involved and how much you need to pay. APR measures both the interest charged as well as any other costs associated with the loan, such as lender origination fees or discount points. APR is very often expressed as a total percentage, such as "7.52% APR Introductory Rate". Because APR is designed to show you the total cost of a loan, it can be useful when comparing loans from different lenders.
For example, let's say you borrow $250,000 for a 20-year mortgage loan and the lender is charging you an interest rate of 7.21%. The lender however, will charge you $3,500 in fees for the loan. your effective Annual Percentage Rate(APR) will be higher than the stated rate on your loan.In this instance the Annual Percentage Rate (APR) would be 7.392%.
Remember that a credit card is a loan, and as such, interest is assessed on any money in the loan you don't pay back within your grace period. APR only comes into play if you carry a balance. Pay your bill each month in full and on time, and you'll never have to worry about APR.
If, however, you can't pay your bill in full by the time it's due, you now know how to reduce your monthly bills. You can make more frequent, smaller payments to reduce your average daily balances.Consolidate your credit card and other debts into one payment. This will make it easier for you to manage your debts, make on time payments, and improve your credit score.
Top Use: APR Calculator - Amount:1600000 Interest rate:5.25% Additional Cost:0 term:30Years
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